Source: Sharecast
The FTSE 100 closed up 0.7% at 9,548.87.
Chris Beauchamp, chief market analyst at IG, said: "The Bank of England’s warning about a correction in stocks has failed to halt the risk-on atmosphere. UK, European and US bourses have advanced in lockstep as investors continue to pile into risk assets.
"Recent trading has seen the FTSE 100 driven higher by a rotating cast of sectors, today’s drivers being banks and miners, long the stalwarts of the London market. Notably French stocks have recouped almost all the losses seen earlier in the week, though the atmosphere in French politics remains febrile.
"The US government shutdown goes on with no sign of a resolution, but stocks continue to ignore the standoff. Nvidia’s bullish commentary on demand has been the icing on the cake, but for most investors concerns about tariffs and inflation seem very distant.
"Perhaps tonight’s Fed minutes will change that, but beyond that investors can look towards the start of another earnings season that is expected to deliver further strong earnings growth."
In equity markets, Lloyds and Close Brothers surged after the FCA said late on Tuesday that it expects payouts on 14m finance agreements where there were "widespread failings" in how lenders disclosed commission payments to brokers, to start next year, with customers receiving around an average £700 in compensation per agreement.
Lloyds said it was "assessing the implications" of the announcement, which will see lenders pay up to £11bn compensation for unfair practices.
The bank said it was looking at "the impact of this consultation in the context of its current provision for this issue and will update the market as and when appropriate".
Russ Mould, investment director at AJ Bell, said: "The motor finance scandal is proving to be less dramatic than thought. Lloyds’ shares jumped after the regulator proposed that motorists would get £700 on average in compensation, lower than the previous indicated amount of £950.
"Lloyds has already taken a £1.2 billion provision to cover the cost, which now looks like a reasonable assumption. The fact its share price jumped means the market is comfortable with the outcome and that a big uncertainty factor will soon be removed.
"Lloyds’ management will be keen to shift the market’s focus to the bank’s growth opportunities in the future, not what it has done in the past."
Elsewhere, precious metals miner Fresnillo and gold miner Endeavour rose after gold jumped past $4,000 an ounce for the first time as investors sought a safe haven amid the ongoing US government shutdown and concerns about the broader economy.
Quilter advanced for the second day in a row after RBC Capital Markets said in a note on Tuesday that it could be a potential takeover target for Lloyds.
On the downside, student accommodation provider Unite Group slumped as it said that 95.2% of beds for the 2025/26 academic year were now sold, down from 97.5% at the same time a year earlier. Empiric Student Property, which agreed in August to be bought by Unite, also fell sharply.
Market Movers
FTSE 100 (UKX) 9,548.87 0.69%
FTSE 250 (MCX) 22,012.03 0.04%
techMARK (TASX) 5,584.71 1.10%
FTSE 100 - Risers
Smurfit Westrock (DI) (SWR) 3,181.00p 4.36%
Antofagasta (ANTO) 2,793.00p 4.22%
Flutter Entertainment (DI) (FLTR) 18,050.00p 3.80%
Lloyds Banking Group (LLOY) 86.38p 3.70%
Anglo American (AAL) 2,900.00p 3.24%
Haleon (HLN) 340.80p 3.18%
Fresnillo (FRES) 2,368.00p 2.96%
International Consolidated Airlines Group SA (CDI) (IAG) 400.00p 2.64%
Standard Chartered (STAN) 1,479.50p 2.49%
Marks & Spencer Group (MKS) 387.20p 2.22%
FTSE 100 - Fallers
ICG (ICG) 2,176.00p -4.23%
SEGRO (SGRO) 647.20p -3.08%
Spirax Group (SPX) 6,960.00p -2.25%
Croda International (CRDA) 2,823.00p -1.71%
LondonMetric Property (LMP) 180.60p -1.37%
Land Securities Group (LAND) 587.50p -1.18%
Auto Trader Group (AUTO) 779.00p -1.12%
Metlen Energy & Metals (MTLN) 45.90p -1.08%
Associated British Foods (ABF) 2,105.00p -0.94%
Bunzl (BNZL) 2,438.00p -0.89%
FTSE 250 - Risers
Close Brothers Group (CBG) 524.00p 5.43%
Quilter (QLT) 173.00p 4.72%
Ocado Group (OCDO) 234.50p 3.85%
Diversified Energy Company (DEC) 1,039.00p 3.69%
Oxford Biomedica (OXB) 648.00p 3.51%
Energean (ENOG) 862.00p 3.23%
Bakkavor Group (BAKK) 214.50p 3.13%
Bodycote (BOY) 682.50p 3.02%
Carnival (CCL) 1,986.00p 2.80%
Senior (SNR) 199.00p 2.68%
FTSE 250 - Fallers
Unite Group (UTG) 630.50p -10.76%
Empiric Student Property (ESP) 84.00p -6.67%
Aston Martin Lagonda Global Holdings (AML) 67.00p -4.96%
Pinewood Technologies Group (PINE) 401.00p -3.84%
Big Yellow Group (BYG) 969.00p -3.00%
Safestore Holdings (SAFE) 664.00p -2.78%
Tritax Big Box Reit (BBOX) 141.70p -2.34%
W.A.G Payment Solutions (EWG) 88.00p -2.22%
Oxford Nanopore Technologies (ONT) 149.30p -2.03%
Coats Group (COA) 79.90p -1.96%
